Dell Technologies Inc (DELL)

Debt-to-capital ratio

Aug 2, 2024 May 3, 2024 Feb 2, 2024 Nov 3, 2023 Aug 4, 2023 May 5, 2023 Feb 3, 2023 Oct 28, 2022 Jul 29, 2022 Apr 29, 2022 Jan 28, 2022 Oct 29, 2021 Jul 30, 2021 Apr 30, 2021 Jan 29, 2021 Oct 30, 2020 Jul 31, 2020 May 1, 2020 Jan 31, 2020 Nov 1, 2019
Long-term debt US$ in thousands 17,811,000 19,382,000 19,012,000 20,119,000 20,177,000 22,962,000 23,015,000 20,562,000 20,287,000 21,197,000 21,131,000 31,699,000 37,167,000 37,935,000 32,865,000 43,325,000 43,608,000 48,353,000 44,319,000 44,727,000
Total stockholders’ equity US$ in thousands -2,894,000 -2,822,000 -2,404,000 -2,664,000 -2,772,000 -3,023,000 -3,122,000 -3,469,000 -2,860,000 -2,462,000 -1,685,000 8,954,000 4,825,000 3,487,000 2,479,000 883,000 -419,000 -1,614,000 -1,574,000 -1,804,000
Debt-to-capital ratio 1.19 1.17 1.14 1.15 1.16 1.15 1.16 1.20 1.16 1.13 1.09 0.78 0.89 0.92 0.93 0.98 1.01 1.03 1.04 1.04

August 2, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $17,811,000K ÷ ($17,811,000K + $-2,894,000K)
= 1.19

The debt-to-capital ratio of Dell Technologies Inc has shown some fluctuations over the past several quarters. The ratio has generally been above 1, indicating that the company relies more on debt financing than equity to fund its operations and growth.

From Q4 2019 to Q3 2022, the debt-to-capital ratio remained relatively stable, ranging between 1.04 to 1.20. However, there was a significant decrease in Q4 2022 and Q1 2023, where the ratio dropped to as low as 0.78, before starting to increase again.

This fluctuation suggests that Dell may have taken steps to reduce its debt levels in late 2022 and early 2023, potentially through debt repayment or other deleveraging strategies. However, the ratio has started to climb back up in recent quarters, indicating a possible shift back towards higher debt levels relative to capital.

Overall, Dell's debt-to-capital ratio indicates a moderate level of leverage in its capital structure, which could impact its financial flexibility and risk profile. It is important for investors and stakeholders to monitor this ratio alongside other financial metrics to assess the company's overall financial health and stability.


Peer comparison

Aug 2, 2024

Company name
Symbol
Debt-to-capital ratio
Dell Technologies Inc
DELL
1.19
Apple Inc
AAPL
0.60
Omnicell Inc
OMCL
0.32
Super Micro Computer Inc
SMCI
0.03

See also:

Dell Technologies Inc Debt to Capital (Quarterly Data)